On the heels of the Trump administration’s new guidance on federal agency AI use and procurement, the administration has taken another step aimed at accelerating how the government works with the private sector—this time focused squarely on defense.
A new executive order (EO) issued this week calls for an overhaul of the U.S. defense acquisition system. Among its most notable directives: increased use of commercial solutions; streamlined approval processes; and a push to align the acquisition workforce around innovation, speed, and risk-tolerant decision-making.
Why does this matter to venture-backed startups and the investors behind them?
Historically, the path into the Department of Defense has been long and laborious. Startups building for national security have often found themselves locked out—either unable to navigate the bureaucracy, or outpaced by the contracting cycles. The latest EO signals that the Trump administration is hearing the concern from the innovation and defense community. Important items from the EO are:
- First preference for commercial solutions and using existing authorities to speed up acquisition cycles
- A review of all major programs to evaluate delays or cost overruns, with potential cancellations for those exceeding thresholds
- A mandate to reform and retrain the acquisition workforce to encourage more agile, risk-aware procurement
- An intent to eliminate unnecessary internal DoD regulations that may be stifling innovation
While many of the details will be worked out over the coming months, the intent is clear: faster engagement with commercially ready technologies—and a more efficient path into the defense ecosystem for innovation companies.
